Bill > SB1963

This bill modifies existing Texas utility law to provide electric utilities with more flexible financing options for recovering costs associated with weather-related events or natural disasters. Specifically, the bill removes a previous restriction that limited system restoration bond applications to utilities operating outside of ERCOT (Electric Reliability Council of Texas), and now allows any electric utility to apply for securitization and bond issuance for system restoration costs of $50 million or more in a calendar year. The bill establishes a streamlined process where utilities can file an application with the state commission to determine eligible restoration costs, with the commission required to issue an order within 150 days. The legislation also introduces a mechanism for true-up and reconciliation, allowing for adjustment of system restoration charges after actual costs are determined. These changes are designed to help electric utilities more quickly and efficiently recover extraordinary expenses incurred during significant weather events or natural disasters, providing a financial safety net that could help maintain grid reliability and protect utilities from sudden, large-scale financial burdens. The bill will take effect immediately if it receives a two-thirds vote in both legislative chambers, otherwise it will take effect on September 1, 2025.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1963